Karnataka HC Restores Education Society’s Land Lease, Finding It Was Running An Institution On The Leased Site

The petitioner Society was granted a lease of land in Sy. No. 82, Soladevanahalli Village, under an Official Memorandum dated 22 July 2004, for establishing educational institutions. The lease deed required the Society to commence its educational activities on the land within two years; possession was delivered on 15 December 2004.

The State cancelled the lease by order dated 30 May 2015, stating that the Society had not constructed buildings or commenced an institution on the leased land. The Society challenged that order under Articles 226 and 227, contending that it operated educational institutions and that the cancellation order’s factual premise was incorrect.

The Court identified no specific statute or judicial precedent as the basis for its decision.

It considered the conditions in the Official Memorandum dated 22 July 2004 and lease deed dated 15 December 2004, including the requirement that the Society commence its educational activities on the land within two years.

The Court’s review proceeded on whether the Government’s stated basis for cancellation was consistent with the material on record and the lease conditions.

The Court considered the Society’s material concerning its educational institutions, including its brochure, and noted that students were studying in institutions operated by the Society.

It concluded that the Government’s finding that the Society had taken no steps to run an educational curriculum on the leased premises was incorrect and reflected non-application of mind. On that basis, it found the cancellation order’s reasons insufficient to sustain the cancellation.

It also allowed the Society’s application in I.A. No. 1/2016 and directed the Government to receive the lease amount for 2016–17 to 2026–27 within two weeks of receiving a certified copy of the order, and to receive subsequent amounts in accordance with the lease deed.